Playboy loses $4.9 million on ETH received as NFT payments

  • Playboy has accepted ether (ETH) as payment for its NFT pools.
  • According to its annual report, the company incurred an impairment loss of $4.9 million.

Still reaping the horrors of the crypto winter of 2022, many major companies are finding new leak holes to ship. In an annual report published by smutty lifestyle magazine, Playboy found a whopping $4.9 million hole in its balance sheet.

The main culprit? Playboy’s ether (ETH) is accepted as payment for NFTs.

It’s still cold from winter

The Playboy Group, the parent company of the popular Playboy magazine, has announced that it has incurred an impairment loss of $4.9 million on the ether (ETH) it accepted as payment for Collect NFT bunnies.

According to a Annual Report Shared March 16, 2023 The lifestyle company still holds the NFT pool as digital assets on its balance sheet. The value of said digital assets is $327,000 USD as of December 31, 2022.

according to filing Shared November 9, 2022 The digital assets themselves were worth $1.74 million as of September 30, 2022. The media company’s digital assets lost 81% of their value between the two quarters of the year due to market conditions.

Additionally, in the report, Playboy explains that it classifies its digital assets as “intangible assets of indefinite age.” These assets are subject to impairment losses due to market conditions and other factors.

An impairment loss incurred by the Company on these assets cannot be recovered even if their value has increased. This is because of accounting rules that require Playboy to note the value of these assets to their “fair value”.

The filing said that the only way a price gain can positively affect a company’s earnings is when the ether on the balance sheet is sold at a profit.

There is still a long way to go

Playboy launched a file Rabbitar NFT collection On October 20, 2021, at the height of the NFT craze. Since then, ether has lost nearly 55% of its value, according to CoinMarketCap.

According to Playboy’s annual filing, the book value of its digital assets held in 2021 was $6.8 million. However, despite incurring significant losses, the nefarious media company is still piling up and making its assets web3 experiences With leaders in space.

on the flip side

  • The cheapest Rabbitar costs 0.0702 ETH, or roughly $122, while the most expensive Rabbitar costs 1,337 ETH, turning in around $2.3 million.

Why should you bother

Playboy is one of the first companies to talk about adopting cryptocurrency in its operations. The company is also one of the few that continues to create new experiences despite experiencing losses.

Read about Playboy’s NFT collections:
Playboy returns to the Sandbox and launches its first NFT collection

Find out more about The Sandbox’s new partnership:
Sandbox to launch a new experience with Havas Play

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